The United States Real Estate is Going Nowhere

The real estate market is showing conflicting signals, with some properties receiving multiple offers while others sit vacant for months. Ryan, Nick, and Chase explore this volatility and share their firsthand experiences navigating today's challenging investment landscape.

With rates hovering in the 6-7% range, the traditional approach of rapid property accumulation deserves reconsideration. Some investors now focus on aggressively paying down existing debt rather than acquiring new properties, potentially using paid-off assets to secure lines of credit for future investments.

Episode Transcript

Speaker 1 (00:00):
Welcome to the Everyday Millionaire Show with
Ryan Greenberg and Nick Kalfas.
Alright guys, welcome back toanother episode of the Everyday
Millionaire Show.
We are here doing an internalpodcast, trying to get some more
content out to you guys.
Unfortunately, we made aboo-boo on our last podcast and

(00:21):
forgot to press the audiorecording, so we'll have to redo
that one.
Ruh-roh.

Speaker 2 (00:29):
That's like the third at third one that that has
happened.
I would say three, but I thinkit's been up there.

Speaker 3 (00:31):
Maybe double that listen.
Nick doesn't know, because hedoesn't do anything.
Yeah, that's true, any idea?

Speaker 2 (00:36):
it was probably five or six.

Speaker 3 (00:36):
I mean, I know that it's happened yeah, and it
didn't happen too long beforethat one, maybe a month before
that when it happened yeah, Ihate to even admit it, but life
is hard it happens there's a lotgoing on, I mean with the
cameras recording, getting allthe settings correct and then
pressing the audio, pressing onebutton, yeah, yeah, now I know

(00:57):
what to look out for and I'mlooking at it right now making
sure it doesn't start to dim offwell

Speaker 1 (01:03):
if we start getting some, uh, some advertisements,
we'll have to hire an actualproducer too.

Speaker 3 (01:08):
Maybe we get some sponsors, that'd be cool.

Speaker 1 (01:10):
Yeah, then we could actually go pro if you're out
there looking for somewhere tomarket, we're here for you.
We're here in the real estateworld, especially maryland, uh
dmv area.
Um, all right, a couple ofthings that I wanted to talk
about today was the market rightnow is it's all over the place.

(01:31):
I feel like I can't get a,can't get a good hold on it.
We have people that are sayingthey're getting multiple offers
on things, and then we haveproperties Chase and I have
properties that are sittingvacant, both on the rental space
and for sale, and I don't knowwhat's going on.

Speaker 2 (01:51):
Yeah, I mean, I feel like a lot of that boils down to
the location.
I feel like, regardless of whatmarket we're in, if you're in a
good location and the house ispriced correctly, it's going to
sell, and then obviously we havethose tougher areas.
I have a few rentals that havebeen sitting for quite some time
and it could I don't think it'sjust the market, I think it was

(02:12):
maybe it could have been likethe cold winters.
Now we're hitting the springit's starting to, you know, fire
up a little bit more, but thosefew units that have been
sitting are still sitting withnot much activity units that
have been sitting are stillsitting with that much activity.

Speaker 3 (02:27):
Yeah, you know, one of ours is like a plus rental
here.
Yeah, it's a rental park.
So you know, I mean, when we'relooking at the we've talked
about this deal 100 times but,like, when we're looking at the
deal, it's like oh, this, thisis gonna rent easy.
You know we won't.
That was the duplex.

Speaker 1 (02:40):
Yeah, yeah, benfield yeah, one of them we got
re-rented um and increased rent,and then the other one they
left because we increased therent and we we relisted it and
it's been sitting now for liketwo months at least yeah, but
it's.

Speaker 3 (02:54):
It's weird because the units right next to us.
So fullerton, the guy that soldus the deal, um, he just rented
his out and he came on after us.

Speaker 1 (03:04):
Basically same exact house with like one wall taken
out yeah same quality of likefinish and everything like that.

Speaker 3 (03:10):
I think it may be a little better.
Um, I think they did a littlebetter job over there.
I think the layouts may be atiny bit better as far as like
master bathrooms, a littlebigger space.
They might get more space overthere, but still nonetheless.
He came on the rental marketafter us.
3500 were listed at 32 and healready had it rented out.
So it's it's just kind ofinteresting to see.

(03:30):
And then we have our flipthat's absolutely dying down in
pg county um right now, justgetting kind of crushed by back
to the benfield one.

Speaker 2 (03:40):
Their duplex is right next to each other.
Both were listed at the sametime.
Do you guys both have signs outfront like what would make a
potential tenant look at one ofthem?
Neither, and it's there's not areally good place for I guess
could probably put a sign on,like benfield itself, a rental
sign because I would just thinkanyone interested in the one
would see the other, unless theydidn't know that the other one

(04:00):
was available for rent yeah, Idon't know.

Speaker 1 (04:04):
I mean the everybody's on zillow.
They're looking at you knowwherever to be fair too.

Speaker 3 (04:11):
Like it's not like we haven't got rental applications
yeah, we have applications,they just haven't qualified, so
like we don't know what hisstandards are versus ours, that
could be completely differenttoo.

Speaker 1 (04:21):
That is true.
That is true, I mean, becausewe are looking for like at least
two and a half to three timesrent.
So they have to make at least120 000 a year to qualify, and
that's, you know, people in that, in that bracket, or a lot of
them, are trying to buy housesand not rent them.
So I don't know, but it isweird.
Um, it's a weird time of yeartoo.

(04:42):
It's like spring time, it'sjust starting, so hopefully it
picks up.
But I know, like there areother markets around, not
locally, like in florida that'sget.
They're getting absolutelydemolished.
So there are markets aroundthat are getting, yeah, I mean
crushed for here.

Speaker 3 (04:56):
Like I've been talking to some agents and like
it's all sub markets, right,like depending on, like, what
street you're on in baltimore.
There's multiple offers, peopleare waiving contingencies.
Again there's going 50k over,um, non-refundable emds even,
which is absolutely wild, andit's just like it's all
dependent.
I think glenn bernie's startingto pick up.
I just had one going tocontract in three days, uh, 10k

(05:20):
over.
So, like it, I think it justdepends on the market.
Like you were saying, nick,location, location, location, um
, and then if it's priced well,like yeah, and that's typical
with the spring market.

Speaker 2 (05:31):
You know, spring is here, people feel a little
better when it's warmer.
I mean, we did have some of thecoldest days in december,
january and early february thatwe've had in quite some time.
It was like you know, and weknew that just by how much of
increased certain bgne billswere.
Um, and talking just about bgne, I had a vacant property, 700
bgne bill.

(05:52):
That was vacant for the wholemonth of december and january
and it was 700 december and like650 in january.
I'm like this is crazy.

Speaker 3 (06:01):
Have you ever tried to call them and argue with them
about that?

Speaker 2 (06:03):
no, I went to the property and saw that the fan
was on on instead of auto andit's a heat pump, so there's no
gas.
If it was a gas furnace it'dprobably be a little bit cheaper
, but because it's a heat pumpand the fan was on, it was just
running 24-7.

Speaker 1 (06:26):
And then when I turned it off, it cut the BG&E
bill in half, but it went fromseven or 650 to 320, which is
still pretty high, for bg is abig problem right now.
I know I've been talking to acouple of multifamily guys that
are getting absolutelydemolished by bg and e increases
, like they're saying thatthey've their bills have went up
by like eight to ten times yeahit was.
So, like some of these olderbuildings, the one that I'm
working on now has one centrallike heating system for the
whole all 12 units and that billis on the landlord and that

(06:48):
bill has gone through the roof.
So the bg is a big problem andit's getting.
It's not just bg need to.
I found um insurance, delmarvapower, different power companies
, different power companies.
So my brother's bill went fromlike three hundred dollars he
has like a two thousand fourhundred square foot house, brand

(07:08):
new construction, so likeinsulated, well, the whole nine.
His bill went from like threesomething to twelve hundred
dollars a month he told me thatthat was wild.

Speaker 3 (07:16):
That's absolutely insane.
Yeah, like, how does somebodylike that's a mortgage payment
for regular?

Speaker 1 (07:21):
somebody like people can't afford that issue.
And then you think about thetenants in some of these units
that are living paycheck topaycheck and they're getting the
ones that the tenants areresponsible for.
They're getting crushed.
So that's a big problem.
I know Mike Griffith talkedabout kind of the power problem
that we're having here, but itis a huge problem for investors.

Speaker 3 (07:44):
Before we move on real quick, I want to talk, nick
, maybe we can.
I can pick your brain aboutthis.
I had a solar guy come over andknock my door the other day and
it's very interesting the pitchthat he pitched me because I
was like, listen, dude, this isgoing to be a rental, I don't
really care about solar, becauseyou know the tenant's going to
pay their own bill.
And he was like, well, I mean,if you think about it, if you
put solar on, invest now, thenyou can charge them the rent and

(08:08):
make the money and you knowyour where your energy costs are
going to be and they're goingto be stationary, so you can
always just make extra money onthe, on the energy costs.
What do you guys think aboutthat?
As far as you know, using onyour rentals?

Speaker 2 (08:21):
um, I mean I've.
I just don't like being sold.
So like if somebody came toknock on my door about solar, I
would have a conversation withthem for one minute and just
tell them I'm not interested, Idon't know enough about it to
have an opinion on it.
Um, the only thing that I wouldthink is will it affect my roof
and will my roof have leaks?
If I did get it done and maybethere's a leak solely because

(08:44):
there?
was an improperly installationof the solar panels or, over
time, kind of like a skylighthow skylights?
They're good at the beginningbut over time, if you have a
skylight it's going to leakeventually.

Speaker 1 (08:55):
They leak, and then you have to replace them, and so
on and so forth, and Idefinitely wouldn't get solar
with a brand new roof, or atleast like within five years or
something, because you put solarpanels on a 10 year old roof
and in five years you got totake them all off and put them
all back right?
Just ate up how many years ofelectric bill.

Speaker 3 (09:12):
So I mean the research that I've done.
Most of these solar companieswill guarantee the roof.
So they check the roof outfirst and they look at it and
say, okay, yeah, this, this is agood roof, this qualifies for
our 10-year warranty or whatever.
It is right they have certainwarranties, but that's
definitely a thought.
The reason that I thought aboutthis was because the military
does this with their basehousing, because their base

(09:34):
housing is where they pay allthe water, the utilities, the
electric and everything.
So their thought is they'rejust going to go ahead and
invest in solar and keep costslow.
Kind of makes sense for alandlord If you have you know 15

(09:56):
properties.

Speaker 2 (09:56):
With you know fairly new roofs, you can make some
extra income on the electricity.
And explain to me what do youmean by making the extra income
on a property that has solarwhen a tenant moves in there?
Like what are you referring togetting that extra income from?

Speaker 3 (10:04):
Yeah, I mean if, for example, let's say my average
electric bill is $200 and byputting solar on my roof maybe
it drops it down to $10 fordeliveries and everything else,
right, so now I can go to mytenant and charge them 150, 180,
$200 a month for electricitybill and that's not really going

(10:27):
to fluctuate that much are youso?

Speaker 2 (10:29):
you mean like include the bg&e bill but charge them
what they think would be like anactual bg&e bill for that
property?
I guess?

Speaker 1 (10:35):
yeah, okay in a sense .
What about the money that youhave to pay for the solar?

Speaker 3 (10:42):
right, so that that money is included in what the
difference is.
So it's going to be a monthlypayment or you pay out of pocket
up front, so that's like abigger, bigger.

Speaker 2 (10:52):
I would like to hear like talk to someone who had
solar for maybe a few years andactually know like, all right,
before I got solar, solar mybill was 300 and now it's X
amount just to see like exactlyhow much you're saving.
And then you know it's kind oflike water bills.
Having like multi-unitbuildings and the owner pays the
water bill.
Like if they run up theirelectricity one month or if it's

(11:15):
really cold in the winters,like we just had, it's going to
drive that bill up you know morefor you as the owner.

Speaker 3 (11:21):
They can do that.
They can do that data with thesolar companies and average how
much you've been using over thelast couple years kilowatts and
say like hey, last year was areally cool.
I mean, you know this past yearwas a really cold winter.
So like how much did you use onaverage?
I think mine was like 1200 and1250 kilowatt hours of
electricity is now.

Speaker 1 (11:42):
The other question is is the technology like changing
and getting see?

Speaker 3 (11:47):
that's.
That's the big question that Ihave, and that's been kind of my
hold back is like you weretalking about a guy that
invented these shingles, yeah,which would be pretty cool
that's yeah, so I've uh, ourhome inspector has equity in
this business that I guess hejust invested in where they're
making like and tesla had them.

Speaker 1 (12:06):
But these are like.
These literally look likeregular shingles.
They're installed like regularshingles with nail guns and
they're solar cells.
So I feel like this technology.
It's just like if you were toget like an iphone five, ten
years ago it does a lot, it's alot less than the iphone right
now.
So I don't know.
I would just worry about thatum.

Speaker 3 (12:27):
The only problem I see with waiting, though, is the
grid system can only hold somany people and, from the way I
understand it, like only so manypeople in a certain area can
have solar and then so manycan't really yeah, from the way
I understand it, but, and I mean.

Speaker 2 (12:44):
Another negative would be what a negative would
be if the tenant doesn't payyour rent.
Right, if they fall behind now,not only are they falling
behind on rent, but they're alsofalling behind that's what I
told the sale guy and you stillgot to pay the bg and e whereas
like you know, if they didn'thave, if they had bg in their
name, you would just have tostill continue to pay your
mortgage obviously.

Speaker 1 (13:03):
I guess there are more questions yeah, I would
have before I would make adecision.

Speaker 3 (13:08):
I just thought it was an interesting thought,
something that I don't thinkmost landlords think about, and
I've just kind of startedpondering it and doing a little
bit of research with chat to see, I think, some of these
multifamily.

Speaker 1 (13:18):
Guys are thinking about it right now.

Speaker 3 (13:19):
The other common spaces and stuff your brother
should be thinking about it.

Speaker 1 (13:24):
I know the problem with his house it's all wooded.

Speaker 3 (13:26):
Oh damn this is not a lot of sun.

Speaker 1 (13:29):
That's the other thing.
It's like if it's fuckingcloudy, there's no, no solar.
Yeah, so a couple months out ofthe year you get like is it
worse in the winter?
You know when, when you needthe electric the most, is it not
?
It's not as sunny, obviously,because it gets dark at 4 pm,
right?
So are you?
How much is that like losingout?
I don't know.

(13:49):
I have a lot of questions.
I have a lot of questions.
Maybe we can get a solar personon here to that'd be kind of
cool finding somebody um nick.
What are you doing right now?
Buying more rentals or flips?

Speaker 2 (14:01):
it's about 50, 50, um .
So I have five underconstruction right now and I
think three of them are flips toour rentals um, and how are you
determining, like, which onesyou're gonna sell?

Speaker 1 (14:13):
like, because I know you're, you're kind of flipping
and doing that all in like thesame little pocket yeah, you
determine which one I'm payingfor it.

Speaker 2 (14:21):
So so, if, if, if I know so I guess generally
speaking you know I buy a lot ina certain area and if I'm
paying, you know, over 90,000for it, it probably won't and I
have to do like a fullrenovation.
It probably won't make sense tokeep it as a rental just
because of you know the debtthat I'm going to have on it and
you know the mortgage after Irefinance it.
So that number will still makesense to do a flip, whereas if I

(14:45):
bought that same property for60 or 70 and I could refinance
it maybe at like 140, 150, thenit would be a good cash flowing
property to keep.

Speaker 3 (14:57):
What's your criteria for cash flowing and keeping as
a rental, and has it changedover the years?

Speaker 2 (15:04):
Oh yeah, it's definitely changed a lot.
I mean.
Yeah, it's definitely changed.
Back in 2021, 2022, when wewere refinancing at four and a
quarter, like anything andeverything was cash flowing.
And now it's like and that'sanother thing Like if I got to
pay more and the interest ratesare six and a half seven still,
well, now then I might not cashflow.
So it might make sense to tosell.

(15:24):
If the house is really close toother houses I have, I may just
keep it.
If I can cash flow, um, like ifI, if I can fully renovate a
property and not worry so muchabout the big capital
expenditures like the HVAC, roofwindows, water heater and all
that good stuff, and I can wait,you know, until the end of that
life expectancy, then I will,um only have to worry about the

(15:47):
you know, the reoccurringmaintenance like pest control,
broken down appliances and stufflike that.
I can cashflow between three to500 bucks and be happy after
paying the PITI.
Uh, if I buy a property and thecashflow is 300 and everything
is 15 years old, that may not beworth it to me, because then I
know there's going to be somecap capital expenditures that
may be coming up shortly downthe road.

Speaker 3 (16:09):
I feel like a lot of investors kind of make mistakes
right now is like they get sobought in on their buy box of
being like, okay, a cashflow is$300, but then they don't think
about those big CapExexpenditures that you're talking
about and that's what me andryan talk about is like if we're
going to keep a property, we'dalmost rather it be fully
renovated to where we don't haveto worry about those things 10,

(16:30):
13 years down the road and wedon't have to basically account
for those in our cash flow.
So three to five hundred is whatyou're keeping right now.
If, if the if you replace thehvac water heater roof um, yeah,
I'm satisfied that like 300 tolow end.

Speaker 2 (16:44):
Um, obviously some are more than 500 as well, but
if everything is new, I'm finewith that.

Speaker 1 (16:49):
Just because of that reason alone, like, obviously
the capex expenses are a lothigher than the general
maintenance right yeah, I, Idon't want to say like the idea
of like retiring through rentalsis like dead, dead, but it's
definitely way harder to do nowthan it was.
Like you said, 2018 to 22 or so, that those you just couldn't

(17:13):
lose.
Like every deal that we did wemade money on, we refinance it,
pull down a bag of money stillcash flowed.
And now when I'm like coachingpeople and talking to different
people that are trying to getinto the game and they're like
so gung-ho about like I want tobuy this rental, I want to buy
this rental, I'm like, look,you've really got to run the
numbers because you might bebetter off putting your money

(17:33):
somewhere else right now untilrates come down and inventory
goes, gets higher yeah, I mean Idefinitely want to buy some
more rentals just by myself aswell, I mean for tax purposes
and other reasons.

Speaker 3 (17:45):
But I mean that's, that's a big thing that I think
about.
It's like, how much risktolerance can I have on that
cash flow side?
Like 300 seems pretty low forme.
But like now that you say likeokay, well, if you're taking
care of the roof, the hvac, theelectric, the plumbing, like all
those big things, then it mightmake sense.

Speaker 2 (18:04):
No, it does make sense and like that's a very
small portion of the wholepicture, right, Like you have to
cashflow.
Okay, great, Then you have,like you said tax benefits,
appreciation, debt pay down yeah.

Speaker 1 (18:15):
And that's the other things you have to really focus
on.
So, like Jet who I'm coaching,we were talking about, like his
portfolio makes a lot more sensefor him to buy stuff that he
can take tax losses from hisother business and negate some
of those profits where if youare just a regular w-2 employee,
those same deals don't makesense because you can't write

(18:38):
off the income right.
So for certain people youreally have to look at some of
those other factors as likereally big ticket items, like
the tax depreciation part of itis, is a massive you know a
massive come up for for somepeople.
But then for the other peoplethat are on the other side of
the fence that are just regularW2 employees, even if they're
high you know high incomeearners or whatever you can't

(19:00):
write off those expenses fromyour portfolio.
So that whole you know there'ssome benefit there but it's not
like it would be for somebodythat is a real estate
professional.

Speaker 2 (19:11):
Yeah, but I would say I'm not and this is not advice
in any way, shape or form butyou know the nine to five worker
who saves 15, 20, 25,000, theycan make that money more money
for them than put into like astock market or something like
that just by buying the realestate, just by getting off, you
know, for those pieces, theappreciation debt, pay down tax

(19:33):
benefits and the cash flow everymonth.

Speaker 1 (19:35):
Now, what are your thoughts about?
I know we've talked about thisbefore.
What are your thoughts on now?
You got some properties.
Let's just say you have 10houses right, you're a new
investor.
You have 10 houses.
What are your thoughts?
And you bought them recently,right?
So your rate's 6%, 7%, 8%.
What's your thoughts on justattacking the debt If you have

(19:57):
an income from somewhere else?
Right, Like high income earneron the W--2 world, you have a
business, whatever.
Just starting to attack thedebt and pay it down.

Speaker 2 (20:07):
And now you have 10 paid off houses I think you
start attacking when you want tostart slowing down or stopping
if you want to.
If your whole goal was to getto 10 and get to 10 paid off
houses, then you start attackingthat debt.
But if your goal wasn't to stop, if, if you still enjoy buying
those houses, buy the right ones, buy the ones that still cash
flow, even at the 7% interestrate that you may refinance at,

(20:28):
then I would still continue todo that.

Speaker 3 (20:30):
Yeah, I would agree with that.
And then I would say if you areattacking them, you better
attack the highest rate first.

Speaker 1 (20:36):
Yeah, well, that's the whole idea.
You attack the highest ratefirst and then, as you pay them
off, you can bundle them up andborrow against them.
So that's another kind ofstrategy.
Instead of borrowing a mortgage, a 30-year mortgage, you can do
a line of credit, anasset-based line of credit.
So then you're not payinginterest unless you use that
money.
So you still have access to theleverage.
It's maybe not as much leverageas you buying something with

(20:59):
with a mortgage, but it is stillreusing that equity in a
certain way.
That's not costing you eightpercent always throughout the
year.
You're only paying it as youuse it.

Speaker 3 (21:11):
So that's yeah, but then you, just you put your
money down, your free money, topay off that debt.

Speaker 2 (21:17):
So in in turn, it's just you're cycling it, yeah
because you could use that samemoney to buy another like one
more house, yeah right.

Speaker 1 (21:21):
So that's why I'm saying like just you're cycling
it yeah because you could usethat same money to buy one more
house.
Yeah right.

Speaker 2 (21:25):
So that's why I'm saying, if you're ready to stop,
but your cash flow goes upbecause you're not paying that
interest right.

Speaker 1 (21:29):
All these loans are front-end loaded up with
interest, so your cash flowincreases significantly when
they're paid off because youdon't have to pay any interest.
But then if you're going toleverage against, it got to pay
interest.
Right, but only when you do itin a line, like in the form of a
line of credit.
You only pay the interest asyou use that money.
So if you're going to do like aburr, for example, you could

(21:51):
buy the whole thing in cash.

Speaker 2 (21:53):
So you mean like instead of like using hard money
and then refinancing out.
You can just use your own money, pay less and then refinance
out to another long-term loan.

Speaker 3 (22:02):
I think you'd have to figure out how long that would
take you to pay those off if youI mean if you had 10 and
they're all yeah, everybody's ina different, you know obviously
a different situation.

Speaker 1 (22:11):
I was saying like somebody that makes a lot
somewhere else they could be amedical device salesperson
making 300k a year and you'll.
If you can live on 100k a yearand you could pay off one house
per year, yeah, and now, 10years down the road, you have 10
paid off houses.
That's pretty good, you know, Imean how much that's.

(22:32):
You gotta ask yourself, I guess, how much money do you need per
month?
yeah to live and then decidethat.
But I I just asked that becauseit because the rates are
sticking where they're at rightnow.
They said they're not droppingthem right now.
They said that they expect, Iguess, a 50-bip decrease by the
end of the year, but that'sreally not that much, so like a

(22:54):
half a point isn't really goingto move the market all that much
.

Speaker 2 (22:58):
Yeah.

Speaker 1 (22:59):
So just something to think about.

Speaker 3 (23:02):
You know comment if, uh, you have an opinion in one
way or another and let us knowwhere you think rates are going
to be at by the end of the yearthat's what I'm curious to see I
think we'll be in the sixes.

Speaker 1 (23:14):
Mid sixes is where I think we're going to land the
end of this year.
Okay, that's my prediction,just based on.

Speaker 2 (23:21):
I'm gonna say low people that I've talked about,
low sixes low sixes I don't havean opinion on that, I'm just
gonna keep pushing, just guess,just keep, all right.
So I think rates will be maybe,hopefully, around five percent
at the end of 2025 five percent.

Speaker 1 (23:36):
Five percent, I'm just being optimistic here.

Speaker 2 (23:38):
Yeah, cool, you said, give me an opinion, okay.
And there it is cool.

Speaker 1 (23:42):
Yeah, five, five would be sick.
I would definitely refinance abunch of stuff pulling refinance
for sure at five percent,because I got definitely a
couple million in that sevenplus percent range.
That is tough, it's it's toughit is, but we have.
You know, you got what's ourdscr loan at.

(24:03):
You know, like seven, seven it'slike seven seven or seven seven
, five or something like that.
Yeah so, and that's a five-yearprepayment penalty too.
So that's tough, that's anothertough one.
But yeah, the market um is not,it's it's.
We'll see what the rates do tothe property.

Speaker 2 (24:19):
Is that?

Speaker 1 (24:20):
that's the bentfield one, but okay we're also doing
like just to go to like some oflike the the bad side or like
the tough side of investing inthe real side of it is like
chase and I have two big flipsthat are open that haven't you
know, that are for sale or aboutone's about to be for sale,
one's for, and then we have onevacant unit at a $1.1 million

(24:42):
duplex.
We're hemorrhaging like $13,000a month in interest payments.
That's just out the window.
Every month 13K.
So for people that are tryingto get into the game and new to
this, make sure that you have alittle nest egg saved up,
because it is not all rainbowsand butterflies.

(25:03):
Things are not just moving, andyou know that's what tyler just
said to me today.

Speaker 3 (25:07):
He's like you, you can handle this.
And I was like I can for alittle bit, but not for like
another year what was it?
You know, the capital callslike having to put up 13k a
month, you know, and capitalcalls.
Yeah, I mean I can handle itfor a look, like you know, but
like it like it's not.
I can't do this for a year, butwe don't expect to do it for a
year, right?
Like it's all seasons andperiods, the um yeah.

Speaker 1 (25:29):
So it's you.
Just you do, you got to becareful, you really do.
I think people get really likeoverzealous, Um, and they're
just like, oh, just buy it,it'll sell or it'll refinance,
like I used to think that way.
Now I'm like we better, you know, yeah, and and we make money.
I mean, we make enough money,but that's the other part.
Um, what's nice aboutpartnerships, too, because

(25:52):
there's three of us that aresharing that expense.
It's still not great that we'respending what four grand, over
four grand, a month each ininterest, but it's definitely
better than one of us spending30, the whole 13k.

Speaker 3 (26:03):
You know, that's that's for sure, yeah, no, 100,
and that's, that's just theproperties, that's not our crms
and our, you know, wholesalingoperation yeah, that's another
three grand a month too.

Speaker 2 (26:18):
Yeah, the website yeah, that's why I try to keep
all of my loan amounts aroundtwo to 250 that way, like those
bigger deals kind of scare me,like if I get up and you know if
it's a property at six, seven,eight hundred thousand I know
just the wind.

Speaker 1 (26:35):
It's, it's it's all relative, right, the winds are
bigger at that.
It's this it's like arguablythe same amount of work and it's
a bigger win, bigger risk.
But like for me to renovatelike a single family, like the,
the one in pg, it's just as easyto do that, if not easier,
because the houses are typicallynewer than a city row home.

(26:57):
Like it's probably easier forme to do the pg single family
house than it is for me to do anold, 100 year old row home that
needs a full gut.
So, for the same amount of work, if you're able to, if let's
say, you're averaging, you know,20k in profits, we should be
40k in profits and it costs less.

Speaker 3 (27:17):
Typically I mean from my experience it costs less on
the renovation side.
Like you know, lakes didn'tcost us 95, but a baltimore
property I mean typically fromthe things I hear you got to go
down, so that's going to costyou, you know, a couple grand
and you're going to be at like125 before you know it a couple
grand to go down, where to digdown?

Speaker 2 (27:37):
we do a lot of couple grand.

Speaker 3 (27:39):
It's like more than yeah, it's more than a couple
grand, but you know what I mean,that's how rich chase is a
couple grand is now 30k yeah, acouple k couple grand couple of
k's in there, but you know whatI mean.
There's a couple of, a coupleof, yeah, yeah, yeah, I didn't
want to tell your price toeverybody so I wish it was a

(28:00):
couple grand that'd be nice.

Speaker 1 (28:01):
I posted it on facebook.

Speaker 3 (28:02):
Somebody was asking but yeah, I mean so, I think,
but it's, it's that thing, it'sexactly that.
It's like you're carryingbigger payments and you gotta.

Speaker 2 (28:11):
That's the thing.
Like you can win bigger, butlike if you're carrying it and
you don't have the funds tocarry it, if you ran out of
construction money and it's justcoming out of your pocket
another thing I was about we'retalking about wholesaling is a
couple of the vibe.

Speaker 3 (28:24):
young agents were talking and they were asking
about like different operationsand asking me about like our
CRMs and like the data providersand cold callers.
And I was telling them like itcosts us around $2,400 a month
to buy the data and then to hirethe cold callers to go through
that data.
And one of the agents respondedlike, oh well, you could just
buy the data and then to hirethe cold callers to go through
that data.
And one of the agents respondedlike, oh well, you could just

(28:44):
buy the data and then go throughit yourself.
And I was like, well, if you dothat, you're getting 10,000
records with five phone numberseach.
So you're telling me you'regoing to make 50,000 phone calls
in a month, and then what?
And then then you still got tofind that.

Speaker 1 (28:59):
But if that's somebody, that that's what they.
If that's somebody, that that'swhat they.

Speaker 3 (29:01):
If that's their job, if that's they, want to make
that their job, you technicallycould yeah, and that well, that
was her point is like if youdidn't have the money to hire
the cold callers, you could dothat.
But my, my point was is like ifyou don't have the money to do
that, you, you should just do itthe free way, like you should
just be on on market dealstrying to find agents to connect
with and have them bring youdeals and that type of thing

(29:22):
until you bring up a nest eggenough to cover a couple months
worth of cold callers and datayeah, yeah, I think people like
to skip steps and I think thegood old-fashioned just hitting
the phones for young people it'sgood.

Speaker 1 (29:38):
It's like the people that uh, uh did door to door
sales, or like car salesmen.
You know, they kind of had tocut their teeth at that grindy
sales job and those people aretypically become the best
salesmen.
Um, so, making those calls, Imean, if you don't, if that's
what you want to do and you wantto be, you know, getting off

(30:00):
marketmarket deals, you can bebird dogging, you can go looking
for properties, driving fordollars.
You can be calling the leadsyourself.

Speaker 3 (30:08):
You could be producing your own leads through
tax records I mean, I think ifyou really want to be in the
game, you should hit up somebodythat's already doing it and ask
to come join their team and,you know, work off a commission
split with them, learn theirsystems and processes.
And if you really want to do iton your own, once you've kind
of built up that nest egg, thenyou can go do it.
But, like you said, there'stons of different ways driving

(30:29):
for dollars is that a salespitch to get people to join the
team?
it's just like a slight salespitch but no, I mean I, I.
It was all relative to the factthat, like in this real estate
industry, you have to have anest egg and cover a couple
months worth of expenses aheadof time.

Speaker 1 (30:50):
And this isn't.
You know, we're not sellingpizzas, it's expensive.
There are zeros, more zerosthan your typical transaction,
your typical business.
Like we're dealing with houses,these are big ticket items.
So everything with houses,these are big ticket items.
So everything inside the houseis big ticket items, you know.
And hfx is everything.
So, yeah, having the systems,the all that stuff, that costs

(31:12):
money.

Speaker 2 (31:13):
So having money around sitting there is
important, um so, and I guessalso you know we're talking
about it cause we do multiple atonce, like for those out there
listening who maybe want to getinvolved with one um, you may
not run into this scenario likewe do, where we're, you know,
balancing different constructionprojects and construction um

(31:34):
budgets.
However, the big thing that theyhave to look out for is like
their estimate that they'regetting from contractors and
what their budget is on thatparticular one property and that
they can, you know, thatthey're able to get a
construction loan that's goingto be suitable for them based on
you know how much money theyhave to, where they don't run
into a jam, where they run outof money and they can no longer
front the construction untilthey can get a draw, and then

(31:56):
things may start going downhillfrom there yeah, I think the I
was talking to somebody theother day about maybe it was jed
on one of our coaching callsthat the construction is where
it's make or break, like that'sthe biggest variable of the
whole entire transaction.

Speaker 1 (32:14):
That's where things, dreams can be made and dreams
can be crushed, because you cango over on something like our
flip.
Luckily we have a good cushion,but like we're over like tens
of thousands of dollars.
The pool was 15 000.
There was one day so this is a.
This is a funny story.

(32:34):
Well, funny for some people Iguess not for chase and I but
one day we found out that thepool was going to cost us
fifteen thousand dollars to fixand the septic which we thought
was good because it was likefixed in 2000, it was there was
a permit pulled in 2017 on it.
Apparently the people that putthe septic in put the dry, the

(32:56):
dry field, higher than the wettank so that nothing was running
with gravity.
So we had to put in a pump andthat was like 80, I think it was
8400, something like that,something like that.
So one day on that job on onehouse, we found out it was like
20 something thousand dollars inchanges yeah that we didn't
expect that.
We didn't expect.

(33:16):
We expected something on thepool.
So we can't say it's 25 000change order, but we expected.
I was thinking like five, youknow whatever.
Five maybe closer to 10 maybe,but it was like 15 and then 84.
That's just one.

Speaker 2 (33:31):
That was just one day yeah, did you guys consider
filling the pool in instead?

Speaker 1 (33:35):
yeah, but it was going to cost money either way I
bounced this back and forth,it's going to cost money.
So it's a hundred thousanddollars to put in a pool, right,
like if, if we wanted to put ina brand new pool, that that's
where I started my rationing offof.
Okay, it's a hundred thousandto put it in, it was going to
cost at least five to tenthousand to fill it in properly.

(33:57):
Then in our backyard the poolhas a big concrete pool deck.
So now there's just a dirt holein the middle of the thing and
a concrete pool deck.
So what would we have to do?
We'd have to put a big concretepad there.
But then you're spending abunch of money.
So, like, by the time I spent10 on the filling it in, we

(34:21):
spent 15 and you have a poolthat's, in somebody's eyes,
worth $100,000.

Speaker 2 (34:26):
Yeah, yeah.
No, it's definitely better todo it that way, but if you're
filling in the pool, you wouldjust take the concrete and put
it in the pool and then just topit off with the dirt.

Speaker 1 (34:37):
Still costs money, true.
How much would you have chargedme?

Speaker 2 (34:41):
To fill it in cost money.
True.
How much would you have cost to?

Speaker 1 (34:46):
charge me to fill it in.

Speaker 3 (34:48):
Yeah, oh, for free.
Can we get that signed?

Speaker 2 (34:52):
for our next project, yeah it's on video.

Speaker 1 (34:54):
Okay, it is on video.
Um, yeah, I, so that that was.
That was a big day.

Speaker 3 (35:00):
That was a big day for us I think we should go over
that project ryan like weshould talk about where we
started is it done or is it just?
About close.
Yeah, um, just to like thenumbers, like the construction,
I mean you're talking about howit could be make or break and
like I mean originally youthought 95 right and like this
is coming from a contractor andhow many square feet was the

(35:20):
house?
it's like 2 000 probablyfinished I think it's more than
that maybe 2400, maybe upstairs,downstairs I thought it was
more, I thought it was closer tothe three range with the
basement, but uh, it's a bighouse nonetheless.
But also there's a garage thatwe didn't realize had a loft

(35:41):
above it, and and then there wasanother building that we didn't
see in the original pictures.

Speaker 1 (35:45):
We also went under contract because we wanted the
area so bad.
We went under contract sightunseen.
We didn't actually see theproperty until a couple of days
before closing.
That's when we found a wholenother building on the property
that was full of stuff.
I mean, we're on 15, 15dumpsters.

Speaker 3 (36:00):
Yeah, so it was a lot and I was.

Speaker 2 (36:03):
I mean we're on 15 dumpsters, yeah, so it was a lot
.
Did my guys go there?
Yeah, oh, okay.

Speaker 3 (36:05):
I was originally thinking around 120 to do it all
, and here we are.
I mean, what are we sitting atright now Like 140?

Speaker 1 (36:18):
We're at 150.
150?
.
And I still haven't paid abunch of people.

Speaker 3 (36:21):
Yeah, so we're going gonna be at like 170, but you
know you buy the deal steepenough yeah, so what's the arv
there?
Oh, that's to be determined.

Speaker 1 (36:32):
Unfortunately, so we've already had offers at 725
like as like during theconstruction process.

Speaker 2 (36:37):
Yeah, we would have to finish it.

Speaker 1 (36:39):
But we've had offers at 725 and that it's severe.
It's in the right schooldistrict.
It's an acre lot.
It's, it's got all the thingsyou know.
It's brand new roof.
Um, it's got what it needs, Ithink, to pull some of the our
one buddy lives locally and uh,right up the road from this

(36:59):
house and he's saying that weshould be close to eight.
So at that price, you know,we're probably at all in and uh,
6 30 range, maybe at this point, 6, 20, 6, 30.

Speaker 3 (37:10):
I don't know what we said.
Right to the numbers but we areum yeah, I mean there's money
there.

Speaker 2 (37:17):
So how did you judge it from the beginning if the arv
was kind of up in the air there?
We didn't know the air, likethat's what I mean we gambled,
dude it was.

Speaker 3 (37:25):
It was a gamble.
It was a gamble.
At the end of the day, therewas a purchase price.

Speaker 1 (37:28):
There was no comps that.

Speaker 2 (37:30):
Yeah, those are the, I guess, properties that make me
a little nervous, like notknowing what the arvs are.
But, like you said, if it's ina good school district, I feel
like that can kind of drive theyeah yeah and then you're backed
up to Chartwell, which are allmillion-dollar houses that
street.

Speaker 3 (37:44):
I mean there are some comps that are close.

Speaker 2 (37:47):
We knew we wouldn't get under $7,000, but after that
it's kind of up in the airwhat's going to be the list
price $825,000?
.

Speaker 3 (37:56):
We don't know yet.
We'll figure that out $799,900.
If you're listening to thispodcast and you're ready to buy
a house in saverna park, we willsell it to you for 799 beds,
the best it's gonna be.
We're gonna list it as fivebeds um so I just pulled up our
calculator.

Speaker 1 (38:13):
If we get, um, if we get it done at 170, which I
think we will, with all of ourclosing costs, upfront fees, um,
and this actually fully countsall the interest that, so it's a
little bit less than this, but615.
So if we get 775 or whatever,there's some, there's some money

(38:34):
there's some meat on the bonesthere how did you?

Speaker 2 (38:38):
did you like pre-market?
It is that how you got a fewpeople interested at 75 well, I
mean.

Speaker 3 (38:41):
I mean.
So Sean is a big local guy herein Arnold and Severna Park in
Annapolis and he had a clientwho was selling their house,
sold their house, and he waslike, hey, I have this property
in Severna Park that's coming.
You know, some of my partnershave this property and we showed
them, they were interested, andso on and so forth.
And then Ryan's gotten a callfrom.

Speaker 1 (39:03):
I got two calls from two different neighbors,
neighbors, yeah one of them sonmight be interested in buying
the house and the other one wasjust inquiring if we're going to
sell it or not.
So people saw us working on itand stuff.
I mean it was like a rat holebefore.
Now it's actually a nice house.
So I mean it's that one's goinggonna sell, I hope, but it is.
It has been a uh, a cashintensive project.

(39:27):
We'll say that I mean youcharge us like five thousand
dollars for demo labor.

Speaker 2 (39:32):
I think there's a lot of work.
I sent my best guys there thatday.
Those couple days could havebeen free.

Speaker 1 (39:37):
Could have been free like the pool you said the pool.

Speaker 2 (39:39):
Was that what the pool was?

Speaker 1 (39:40):
yeah oh, should have been free.
I'll take my check at the endof the um.
So what are some of the thingsthat we think are people are
failing right now because of?
So one of the things that I hadon my list here was mindset.

(40:03):
So why most investors fail andhow to avoid it Common beginner
mistakes.
What do you think?

Speaker 2 (40:12):
Buying wrong, buying too fast, not actually knowing
the numbers.
You really can't actually knowthe numbers personally until you
have some time in the game.
When I first started I didn'treally know a lot of the numbers
and I didn't really understandCapEx and maintenance calls that
may pop up.
There's ongoing maintenancecalls that happen in some of my

(40:35):
properties, such as pest control, broken appliances because
tenants don't know how to usethem properly.
For example, like a washerwasher.
They'll load it up with twoloads of laundry and or three
loads or whatever it may be, andthen it just doesn't work
anymore.
So there's certain expenses thatpeople might not factor in and
I feel like a lot.
The majority of the people thatjust factor in, you know

(40:57):
P-I-T-I, principal interest,taxes and insurance and then
they say this is my cashflow,but they can have a 15-year-old
water heater, they can have a10-year-old furnace, they can
have old appliances that aregoing to break soon or have a
lot of maintenance issues, a lotof different things.
Like that, I think, is wherepeople get trapped.
They look at just that servicenumber, my cashflow $400 a month

(41:17):
after paying my mortgage.
I'm good but in reality arethey looking at all the big
stuff?

Speaker 1 (41:28):
Yeah, so we've been working on some calculators for
people that join our course.
So I do have a good one forflips and a good one for rentals
that do take into accountpercentages for each of those
things, for vacancy, for CapEx,and it really does a good job of
breaking down all the numbersfor you automatically.
So for those of you that aregoing to join the community,
join the course, you will getaccess to all these calculators.
We've been, I've been likereally dialing them in.
Some of them are, some of themare actually pretty cool now

(41:49):
that we've gotten all the mathto work right on the spreadsheet
.
So I will, uh, I will sharethose with with people.
But the knowing the numbers,running the numbers, buying,
right, um, I think, yeah, Ithink you kind of hit the ball
on the head there yeah, I mean I.

Speaker 3 (42:06):
The thing is with investing is it's a business.
Some people do it verypassively and I think that's
where a lot of people make themistake of kind of treating it
like a hobby in a sense, andlike when you don't know your
numbers, it's kind of like anaccounting issue, right like
you're, you're like oh okay, I'mcash flowing $300, but this
maintenance repair was $300 thismonth and next month, and then

(42:27):
next thing you know, you didn'teven know you were negative for
cashflow for the year and it'slike, oh, I had to replace that
AC unit, but things just startpiling up on your credit card or
whatnot, and it's just it's abusiness at the end of the day,
so you got to treat it like one.
Um, I think that's part of themistake some people have is they
treat it like a hobby and not abusiness.

Speaker 2 (42:46):
Yeah, I mean a big thing, like you said.
Like, just know your numbers,know that.
You know if on on the surface,it looks like your cashflow and
300 bucks, if you're playing, ifyou're paying a property
manager 10% and let's say you'rerenting a property for a
thousand dollars, which is onthe lower end, that's you're
paying them a hundred bucks amonth.
That's 33% of what you thoughtwas cashflow, just because

(43:09):
you're paying them a hundreddollars of that.
Um, so there's a lot ofdifferent things like that,
small things you have to factorin to make sure that you're not,
and I think bookkeeping too,then like is really like that's
where bookkeeping comes in.

Speaker 1 (43:23):
Knowing your numbers internally in your own business
is super, super important.
I learned it the hard way.
Now I have multiple levels ofaccounting people in within our
organization.
That's literally counting themoney every day, every single
dollar in and out.
I don't know how much is thereand how much is owed or being
paid to us.
Like we have people that that'stheir job is to account for

(43:45):
that money.
And when you don't have that, ifyou're like a couple of
properties in, you could do ityourself, probably on QuickBooks
or spreadsheet even.
But if you're not doing it withevery single dollar and I say
spreadsheet but that's reallynot a good practice because it's
not capturing the expenses asyou actually pay them in real

(44:06):
time, like in quickbooks.
As you swipe the card it comesinto quickbooks, then it gets
categorized in quickbooks.
It's much easier to forget toenter that expense into a
spreadsheet.
At the end of the day, if yourwasher broke and you had to pay
bruno's 250, it's really easy toforget to put that number in
your you know, into aspreadsheet.
So having a system umquickbooks is pretty cheap.

(44:28):
I mean the baseline is probablylike 30 bucks a month or
something like that, um, havingthat and actually using it too,
because I think a lot of peoplethere's a statistic and I saw it
, I think my bookkeeper maybeeven shared with me like a large
percentage of people haveQuickBooks and don't use it.
Or like they just oh yeah, I wasthat person for a little while
so like they pay for it, butthey're not in there

(44:50):
categorizing properly or settingup the classes or whatever they
you know, whatever you have todo for your specific business.
When you do that, sometimes youhave a stark awakening of like
oh shit, I thought I was makingmoney, but you're just turning
wheels and not really makingmoney.

Speaker 3 (45:07):
Yeah, that's why you got me with Cindy, and so now I
hired an accountant or a CPAwhatever you want to call them
to kind of go through those andcategory.
I see that, because that'salways.
You know, I was payingQuickBooks and I sold $30 a
month and I wasn't looking atanything.
I just knew that you know allmy transactions were going
somewhere, so I had somethingsaved.
But now I just have to spendthe man hours to go through and

(45:29):
categorize.
So I was like no, I'll just paysomebody else to do that.
And now she can handle that forthe next year or so yeah, is um
.

Speaker 2 (45:35):
Is quickbooks good for real estate rentals, like
owning rentals, and?

Speaker 3 (45:40):
yeah, it can work for that.
I think your property Build itout.

Speaker 1 (45:43):
It's kind of something that you can build out
to your own liking, usingclasses, using different there's
project features in there.
You can really, because $30 amonth is your baseline, right.
I pay probably $1,000 a monthor something stupid, I don't
even know how much it is, but wehave all of this stuff under
one kind of roof, so we haveunlimited classes and it's not

(46:06):
just your basic thing.
So you can build it outessentially to be kind of what
you need.
But if you're I mean if forsomebody like you I would say
you could do everything that youneed for accounting, probably
within Appfolio.

Speaker 3 (46:20):
Yeah, that's what I was going to was gonna say.
The next thing is like ifyou're just doing rental
properties and you don't have abusiness, then you can do it all
in the property managementsoftware.

Speaker 1 (46:27):
Typically it depends on which app folio does have
corporate accounting featuresthat you can use, um, but we are
just partial to quickbooksbecause that's what it's.
Also, depending on what yourcpa firm how you do your taxes
my cpa firm gets in ourquickbooks.
That's how they do everything.
So I would have to either paymore or figure out another

(46:48):
system to do my corporateaccounting within appfolio um.
So that's.
I have so many people.
We have apm, which is like athird-party accounting company
for app, for our app foliospecifically.
Then I have cindy, who's ourconsultant, then I have karen,
who's our full-time bookkeeper,then we have brian, who's the
cpa, and there's like six peopleyeah, you're deep over there.

Speaker 3 (47:10):
Um does now?
Does app folio allow you to seetransactions that were charged
to your credit card, though forexpenses?

Speaker 1 (47:18):
okay, yeah it on the corporate side of it, yeah, and
then so at folio has two,basically two tracks of
accounting corporate accountingfor the whole business and then
property-based accounting, right?
So the property-basedaccounting is what's most
important for the rentalsspecifically individually, um,
but the corporate accounting isobviously important for the
overall health of theorganization but the quickbooks

(47:40):
will be best for the rehabbefore to rental right yeah, I
would say quickbooks is probably.
The is more versatile in thatway because you can put in
whatever categories and glaccounts that you want.
Um, I don't know if you reallywant to track your expenses and
know your numbers for a fliplike, I think, quickbooks is
easily the best because you'reseeing all your credit card

(48:02):
charges and it can all flowstraight from like home depot or
wherever and what's also niceabout quickbooks too, when
you're getting into, like,getting some big loans and stuff
like that is the balance sheet.
So it keeps your balance sheetwhere it tells you exactly how
much equity you have at anygiven point and as you pay down
that mortgage, your balancesheet changes and it goes up.

(48:24):
So there's other benefits likethat I don't even want to talk
about cause I don't really knowtoo much about it, but I know
that's what we do, so and I knowI paid a lot of money for
people to set that up for me.
So, knowing your numbers again,it just goes back to what you
said.
Know your numbers again, itjust goes back to what you said.
Know your numbers.
That goes for buying the house,rehabbing it.

(48:45):
Um, don't get screwed over bycontractors.
I just got screwed over by acontractor in florida, a boat
contractor of sorts.
So this is, um, yeah, lessonlearned for me and I'm like,
literally in the contractingbusiness.
Not that they were a contractor, they're boat repair people,
which is kind of a contractor,not the guy that was on the boat

(49:05):
when we were there, right?
no, no, no, no.
So I somebody.
I got carl actually found thesepeople on google, but, um, and
it's not.
It's obviously not his fault.
They're just pieces of shit,but the my welding thing that
was, I was welding that rodholder bag they picked up my
boat chart.

(49:26):
They so they.
The whole deal was they weregoing to pick up my boat with
the trailer.
So they're going to pick up mytrailer at my tampa house, bring
it to the marina.
Boat goes on the trailer,trailer goes to the shop, they
weld it.
That was that's a lot of trust,dude, right?
So they, they picked up my boat, they called me and they said,
hey, when we picked up yourtrailer, your brakes were locked

(49:47):
.
It's $1,100.
I'm like the fucking trailer is$1,100.
What do you mean?
So they charged me $1,100 topick it up and bleed the brakes
and then it sat in their yardand I basically told them I'm
like, hey, I'm going to, beforeyou pick it up, like I need it
back by this day because I wascoming down and I want to use

(50:08):
the boat.
So I was like I spend a lot ofmoney to keep my boat down there
and I'm only there every otherweek, so I want to make sure
that you guys have it on thatweek that I'm not there.
They said, no problem, wepromise it'll get done.
It'll get done.
So it's like three days beforeI get there, I'm like, oh, let
me check in and make sure thatactually got done.
They're like oh no, you'reactually not on the schedule

(50:28):
until next week.
I'm like what the fuck?
I literally told you guys thatwe were coming.
I was coming into town this day.
I needed it today, like in twodays from now, and they're like
oh well, well, sorry, nothing wecan do about it.
I'm like so you charged meeleven hundred dollars.
You didn't fix the fucking thingwhen you told me you were going
to, and now I'm sitting therewith no boat.
So finally they're like let me,let me see what I can do.

(50:52):
So now I'm at this point I'm inflorida and I'm like they're
biting at the bullet to get myboat and they're leaving me
basically like on red andthey're like, oh well, we'll,
we'll be able to get to it.
I think you can have it bysaturday.
Okay, friday came and we weregoing offshore saturday.
Like I had people like we wereplanning to go offshore fishing.

(51:14):
They said, uh, friday comes.
No, no call from them.
I finally called and I'm likewhat's going on?
Like, oh, we can't get to you.
Until he had the balls to sayI've moved mountains to get you
done by wednesday of next week.
I'm like this date has changedand moved back like four times
at this point, so like I don'ttrust that you're gonna get it

(51:35):
done.
So I called like a millionpeople down there that I knew,
because I don't have a truckdown there.
So I had a boat on a trailersitting in a lot somewhere and I
have a little bmw race car likeI have no way to pick it up so
I called all these people that Iknew with trucks to try to find
a truck, finally found somebodyfrom my marina that had a truck
was willing to go pick it up,picked up the boat.

(51:57):
By the time I got it it was itwas friday night at 10 pm that I
got that.
I finally got possession of theboat and we were leaving the
dock at 6 am the next morning itwas a nightmare so and you paid
them a lot of them yeah, and Ipaid them 1100.

Speaker 2 (52:12):
Wait, they were supposed to weld the trailer no,
they were supposed to.

Speaker 1 (52:15):
I, a rod holder broke off like my t-top, so did they
ever did they fix?
That no no, it's still, it'sstill broken so they made money
on your bleeding, your brakes.

Speaker 2 (52:26):
I'm just eleven hundred dollars in the hole so I
mean, like do you even aresitting for a while?
Like how do you even know thatwas accurate?

Speaker 1 (52:31):
I I don't think it was accurate, because before I
drove it to chase and Iliterally just drove this damn
boat down to florida a couplemonths ago and before that, like
a week before that, I had thewhole trailer serviced.
I always bring it into thistrailer shop before I tow it
down to have it like just a onceover done you know, and they,
they did some.
I don't know what they did, butI paid some money to have it

(52:55):
serviced yeah and so I I thinkthey just totally robbed me.
I literally think they justrobbed me.
So they'll get what they'll getit, they'll get it back.
But that's on to my next point.
Be careful with contractors,especially in this, in this
world.
Um, I've been hearing more andmore people getting robbed from
contractors and I guess it's.

(53:17):
It's not as crazy as it sounds,but there was a guy in Delaware
that just got caught with $1.2million of contractor fraud.
He was taking deposits and justnever answering the people
again and he ended up gettingcaught.
But $1.2 million is a lot toget away with on the front
without anybody figuring it out.

(53:37):
Yeah, you've got to collect alot of deposits that way.
Get away with on the front, youknow, without anybody figuring
it out yeah, you gotta collect alot of deposits that way.

Speaker 2 (53:43):
there was a kid, years a few years back, who he
was building a pool company outof colorado and he was taking
deposits and wasn't finishingjobs and collecting new deposits
, start new jobs and he justlike kept going under and, uh,
you know, went bankrupt becauseof it, just because he couldn't
keep up with what he was doing.
Yeah, that is tough.

Speaker 1 (54:04):
Um, yeah, so vet your contractors, ask them the right
questions.
Go see their projects.
Like I'm doing a big job rightnow for somebody, um $500,000
remodel with big additions herein Serena park.
These people have put methrough the ringer, like I had
to walk them through thatwaterfront build that we did.
I literally have walked themthrough like six projects.

(54:26):
I did a smaller project attheir home here, like their
current home, and like they aregrilling the shit out of me,
which rightfully so you're goingto spend like a half a million
dollars.
Somebody you better know.
You know what you're getting.
But I feel like a lot of thesepeople they especially I get
calls a lot.
I just had this.
Actually, when I was down inflorida, a lady called me, um,

(54:47):
looking to she's like I'mlooking to buy properties a
foreign lady, I don't know whereshe was from, but looking to
buy properties and fix them upand rent them or sell them okay
great, that's what everybody'sdoing, right?
she was like asking me.
Everything that she was askingme was basically how to get
things done the cheapest waypossible, and I just got so
frustrated.

(55:07):
At the end I said you know,like you really get what you pay
for.
I'm probably not the right guyfor what you're looking for, but
be careful out there on who youuse, because if you're just in
it to get it done as cheap aspossible, you're going to get
burned Somewhere down the line.
It's going to come back to biteyou.
So we'll see.

Speaker 3 (55:29):
I mean, that's on my first flip.
I thought I was doing it theright way.
I told my contractor like hey,I'll pay you more.
I know I'm paying you more thanI should be, but I'm doing that
because I want you to do goodwork, right, and like I'm gonna
hold money at the end to makesure you do good work, but I'm
gonna pay you more than what Ithink you're worth yeah but

(55:50):
please don't screw me over.
And she did, and I still gotscrewed over so it's like you do
got a, definitely vet thepeople that you're working with
and I agree 100% A contractorcan absolutely murder your deal.

Speaker 2 (56:05):
Yeah.

Speaker 3 (56:05):
I think that's why you're so popular.
To be quite fair, You've donereally good work.
You've built really goodrelationships with people.

Speaker 1 (56:13):
To be fair, the bar is set so low for contractors.
I agree it's funny, but it's notfunny Like if you just show up
remotely on time and do close towhat you say you're going to do
, you've just beat out 90% ofcontractors, literally.
It's like that's how bad it is.

(56:33):
That's I mean.
It's.
It's really kind of crazy.
And now, like we're booked withnew constructions, now Like
we've built you know, know, abunch of new homes, but like
people are flooding in becausethey're like all these other
people have made these emptypromises and whatever.
I'm like it's it's very popularfor people to get screwed over

(56:56):
by builders and contractors.
Like it's way more popular thanthan than you think.
Um, so be careful, anybodythat's out there buyer beware.
You know, do your due diligence, knowing your numbers, all good
stuff.
Um, I did have somebody elsereach out about our coaching
platform and I basically toldthem and I'm going to tell
everybody here like it's taken alot more time than we thought

(57:16):
to get all this content andeverything together.
So it's coming down the road umcouple, probably another month
or two before we have somethinglike really solid, but it's.
It's definitely more of anundertaking than I anticipated.

Speaker 3 (57:27):
Well, I mean, you can't rush it right, like that's
the whole point that I've beentrying to like dial in is is
we're not going to rush it, no,we're taking our time.

Speaker 1 (57:34):
Like, of course we want it to be out there as soon
as possible, but on the sametoken token, we want it to be
super valuable for people andpeople actually feel like they
receive the value that they'regonna pay for it and every time
I think that I have like asegment in my head like all good
, I talk to somebody or someconversation happens and I'm
like oh shit, I totally forgotto add this part in and that's

(57:56):
like such an important part ofthis topic of building a
business or scaling the systemsor whatever.
Um then I'm like, oh, back tothe drawing board and gotta,
gotta redo it basically, uh,from scratch.
And you, it's funny I we shouldhave like a bloopers tape of
all the takes that we do onthese things like it would be
really funny to see.

(58:17):
It would be inappropriatebecause of the things that we
say when we do screw up if Iwouldn't go over well on youtube
, but it is.
It's a lot, man.
It is way more than I thought.
Um, and I was a teacher fornine years, I was like, oh,
building a course easy, I didthat basically, yeah, it's a lot
.

Speaker 3 (58:34):
I mean even from the like, the camera equipment to
everything.
I was trying to make sure thatall that's right, like we've had
.
We've had where the audio onlycomes in one ear and not the
other ear.
There's a lot to it, but we'retrying to make sure that the
value is super there.
But we have the Facebook group.

Speaker 1 (58:51):
We haven't started really putting in content into
that, but we're kind of usingthat as a place to collect
people and use it as a kind of alaunching platform.
Nick's going to start postingvaluable content in the Facebook
group any day now.

Speaker 2 (59:03):
Yes, sir, keep an eye out for it Any day now.

Speaker 3 (59:06):
Yeah, I think behind the scenes, like stuff at your
rentals or anything like, ifyou're evaluating a deal, that
would be a really cool placethat we could start posting
content and then, if people havequestions about certain deals
or something like that, they canpost in there.
Yeah, I think another thingthat we, if people have
questions about certain deals orsomething like that, they can
post in there, yeah, yeah.

Speaker 1 (59:23):
I think another thing that we probably need to look
at and we could talk about thislike another time internally but
is just having like somebodylike Mitch unfortunately, mitch
is so good but he's expensiveLike having somebody like that,
like two to three days a week,just following us around and
capturing like the stuff that weneed captured.
There's so much valuablecontent of us just like going to

(59:45):
these projects and checking inand seeing the mistakes and
seeing what you know, what wecould have done better.

Speaker 3 (59:51):
Um, a lot just goes uncaptured because we don't have
somebody to do that but well,if you're out there and you're
good with a camera and you wantto see the insides of what we're
doing and be a part of the team, yeah, hit us up If you know
how to use a camera.
Yeah, I mean I would love tohave a little intern follow me

(01:00:12):
around, and same for Ryan, likesomeone to follow him around to
the projects.
I think there's a lot ofvaluable content and I promise
you you will learn a lot.

Speaker 1 (01:00:21):
Yeah, I do a lot of valuable content and I promise
you you will learn a lot.
Yeah, I do have an intern forthe summer, maybe we'll teach
him how to use a camera whenhe's back from college, we'll
see but yeah, it's, it'ssomething that we need to do.
We need to do better, get morecontent.
I mean, um dude, so that, uh,that p home remodeling
commercial that I did I and Ididn't even I should.
I say I did, but I spoke, Ididn't even speak on it.

(01:00:44):
Mitch spoke on it.
Yeah, 82 000 views on instagram.

Speaker 3 (01:00:49):
It's pretty good and that was that paid.
That was paid right.

Speaker 1 (01:00:52):
I boosted it yeah yeah so, but compared to like
our other ones where we'regetting, like you know, I don't
know thousand, eleven hundred,eight hundred, this one's like
82.4k.

Speaker 3 (01:01:06):
Yeah so, the boosting , the boosting works, boosting
definitely works are you gettingleads from that like, are you
getting dms?

Speaker 1 (01:01:12):
so yeah, we've gotten a lot of dms.
Unfortunately, we also get alot of spam now because of it, I
think.
So there is like random peoplethat hit us up that are they're
clearly not clients, but we havegotten several leads from it as
well.
So I don't know.
I'm just so busy right nowanyway, I can't even really
handle more leads, so we'reworking on scheduling stuff

(01:01:35):
further out.
But yeah, I think the socialmedia stuff is important anyway
what else?

Speaker 3 (01:01:43):
speaking of social media, I was actually in uh
baltimore today teaching some ofthe young kids how to wholesale
deals and I hate that you sayyoung kids, because that's you
are young and it's making usseem like we're like old pieces.
You know you're old, you'resuper old, um, but no, I I call
them that because that's likethe.

(01:02:04):
The group chat name is like theyoung vibers or whatever.
So like in my head I'm like theold guy there because I'm 27,
but like, and they're all like24, 25, 23 some of them might be
just youngins, just little,little babies.
So, anyways, the point is like I, the the one girl there, uh,
adriana, she has like a 13 000followers on instagram, but she

(01:02:27):
was telling me today she's likeniching down in the new
construction.
She has a few new constructionum buyers, and I was telling her
about all the new construction.
So I was like yo, like let'scome on, let's collab, let's do
some um, some content, becauseall of that now her network is
seeing our network and ournetwork is seeing her network
and you know, you cross platform, you get some followers, but

(01:02:48):
also it helps, you know, withthe sell of houses and a
different thing.
But like content I was talkingto her about, is content so
evergreen, like it will alwaysbe there.

Speaker 1 (01:02:56):
It's a living resume that's why we do this that's why
we do this.
Yeah, we got to do this more.
Um.
Yeah, I think I mean we.
I also want to say we have thisshould come out before then.
But april 10th we have anotherevent, cvp six to nine, towson.
Um.
Last event was really good.
I felt like there was a lot ofpeople at the last one so

(01:03:19):
hopefully this one's springtime.
The winter always seems slower,but last one was actually pretty
popping, so hopefully, uh,everybody that's listening can
make it.
Um, we have a bunch of sponsors, a bunch of stuff to give away,
so that'll be, uh, another goodevent.
Um, if you haven't been to oneof our events before, they're
fun.
We're not selling anything.
We're giving food, drink,tickets and just good time with

(01:03:43):
some some cool people.
You get to see nick.
You get to see nick over hereyeah, you never lie, baby all
right, anything else we gotbefore we wrap this up, so I can
go eat my sushi my tuesdaynight sushi I think that's all
for for this episode.
All right, next time we willhave some more updates on this

(01:04:04):
course and thank you everybodyfor listening and comment.
If you have anything to sharewith us,